Tag Archives: Market News

At the risk of sounding London-centric, the changing face of London markets is providing an astonishing example of how good markets successfully adapt to their constraints and circumstances.

Recently, I have been hearing success stories emanating from the East End Chatsworth Road Market in Hackney, London E5 (It used to be Clapton in my day). A traditional street market, the linear High Street includes rows of lock up shops fronted by market stalls, catering for the newly mixed demographic of different ages and ethnicities.

I speak somewhat informatively as from the age of eight, I had to work on my father’s Chatsworth Road stalls every Saturday and during school holidays in what was at the time a largely poor neighbourhood where the most exotic products to be found were Fry’sTurkish Delight bars, more accurately described as FTD – misshapes.

Chatsworth Road was of fundamental importance to the local community, selling everything from live eels to white goods

The market and fronting shops were always exceptionally busy as locals performed their daily shop and I can’t remember  there being any form of supermarket back in the late 60’s and early 70’s within walking or bus journey distance. Chatsworth Road was of fundamental importance to the local community, selling everything from live eels to white goods.

If I am honest, I feel more nostalgic now with fond memories of how life used to be and have forgotten the freezing cold winter days: flashing out at six in the morning and sweeping up at six at night, but life was straight-forward and honest and my parents earned a decent living from the market.

It appeared as though the retail core had been sucked clean out of Hackney

During the 80’s I worked as a civil engineer in London and would occasionally take a nostalgic drive to Chatsworth Road and was shocked by the desertification of the area. It appeared as though the retail core had been sucked clean out of Hackney by the supermarkets: shops were boarded up and to all intents and purposes, the market had disappeared. However, the sun now shines once more over Chatsworth Road as it has learned to provide the good folk of E5 with what they want and cannot find in the big five – multi-ethnic variety, professional service, tremendous food, cafe culture and above all, unadulterated honesty, a theme which transcends the generations.

Chatsworth Road is just one example of successful and organically developed market regeneration

Chatsworth Road is just one example of successful and organically developed market regeneration in London, of which there are many more. The notion of delivering what people want will filter through other British towns and cities, further underpinning the great British Market renaissance.

 

With thanks to I Love Markets for kind permission to use their images in this article.

 

I Love Markets celebrates London’s markets and all of the wonderful things that can be found within them. We believe that to discover the heart of London, you need to discover London’s Markets. No market is the same and we want to help you discover the unique experiences that each one has to offer. Find the latest news, markets and events at www.ilovemarkets.co.uk

Colchester market

Two years ago Quarterbridge was appointed by Colchester Borough Council to undertake a complete study of the town’s Charter Market, incorporating assessments of location and operational management, providing a complete overview and to make recommendations on how the Council could improve the market.

Key recommendations included reunification of a disjointed market and relocation to a prime footfall area

Our report delivered several recommendations, key amongst them was the reunification of the currently disjointed market and relocation to the prime footfall area of Colchester High Street. Whilst we undertake this type of report several times a year, this particular project was made that bit more interesting and was particularly close to our heart as our head office is based in Colchester.

The relocation is now proceeding with the launch of the New Charter Market in Spring

Colchester Borough Council understand the importance of the market to the town and since the presentation of our report we have worked closely with the council to assist in making our joint goals of a relocated, re-energised and much improved new Charter Market, come to fruition. Through budget allocated as part of the New Homes Bonus, the relocation is now proceeding with the launch of the New Charter Market in Spring this year. We have provided detailed on-going assistance on financial planning, the tender process for new stalls and ground anchors, trader liaison, operational documentation and guidance.

‘The new Colchester Market will create a strong focal point for the town, with a more modern feel’

Councillor Nick Barlow, Portfolio Holder for Street and Waste Services said: “Colchester has a strong market tradition and we know other towns such as Lincoln and Bury have experienced a positive impact on the reputation of their towns. The new Colchester Market will create a strong focal point for the town, with a more modern feel. The introduction of electricity will be a huge boost for existing stallholders and will allow the market to attract a wider range of stalls moving forward. These changes also unlock the potential for evening markets in the future.”

We look forward to continuing to work with the excellent team at Colchester Borough Council and enjoying the new market… right on our doorstep!

 

 

The start of 2015 saw a very old saying amongst stockbrokers come true: ‘Sell your shares in any company when it buys a company jet or builds a new headquarters’ they say. Companies lose touch with reality as they get bigger and one person who seems to agree is ‘Drastic Dave’ Lewis, the new Chief Exec. of Tesco. He announced the closure of both their Cheshunt HQ and Kansas Transportation Ltd, the Company subsidiary which discreetly operates a fleet of 5 executive jets.

From now on it’s RyanAir only for Tesco directors as they struggle against falling sales and a £260 million accounting scandal

This must come as a disappointment to former CEO Phillip Clarke (currently under investigation by the Serious Fraud Office). It limits the possibility of doing a flit in the £31 million Gulfstream jet delivered last month as part of the £29m cost of flying executives around the world 2005-2012. From now on it’s RyanAir only for Tesco directors as they struggle against falling sales and a £260 million accounting scandal. And now we know who owns all those private jets parked at Luton airport.

The good people of Cheshunt, home to Tesco’s ugly concrete HQ since 1973 were also less than happy about job losses and a move for remaining staff to Welwyn Garden City. ‘I can’t believe it’ Ward Councillor Mike Iszatt told the ‘Hertfordshire Mercury’. ‘I don’t know why they want to move out of the Borough – it’s so convenient for their employees next to the station and we’ve got crossrail coming in the near future. I hope they will reassess their decision’.

The international credit rating agency Moody’s downgraded Tesco’s credit rating to ‘junk’

Apart from that, Drastic Dave suspended yet a ninth executive – Chris Robinson, finance director at food sourcing – and confirmed the closure of the defined benefit pension scheme for staff, 43 convenience stores and cancellation of 49 new store developments. Stockbrokers seemed mildly pleased and shares rose to £2.20, still less than half their pre-scandal level. Nevertheless the international credit rating agency Moody’s downgraded Tesco’s credit rating to ‘junk’, saying “structural changes in the UK grocery retail market will continue to challenge the Company’s operating performance”. Whether that enables suppliers to demand better terms from the retailer is unclear.

The announcement of a new ‘Retail Ombudsman’ has been greeted with mixed feelings

The ‘Kipper season’ is now upon us. It’s always a good time for everyone to have a moan so the announcement of a new ‘Retail Ombudsman’ has been greeted with mixed feelings. The response to this ‘new independent service to resolve disputes with supermarkets, high street brands and online retailers’ has been less then overwhelming. Like several other Ombudsman services it lacks teeth as it is unofficial i.e. not established or vetted by Parliament. Its adjudications are not binding on anyone unless they happen to subscribe to it, but if you do and it does find in your favour don’t feel too smug – the complainant can still take you to court.

So why establish a toothless Ombudsman?

So why establish a toothless Ombudsman? Apparently this is a mainstream retail response to the forthcoming EU ‘Alternative Dispute Resolution directive’ which will take effect in July. This says the retail sector must have an ‘Alternative dispute resolution body’ – but Parliament has already decided the new watchdog must be official i.e. vetted by the Trading Standards Institute. So whilst toothless in the interim it may morph into that in due course but the meantime is funded by subscriptions from 3,000 or so retailers who have signed-up to it. You can offer it as part of your Customer Care Charter which is one way to take pressure off your Customer complaints department. Especially if you run the notorious ‘No-help-whatsoever-desk’ at RyanAir which has an annoying habit of emailing an apology to your mobile and not accepting replies.

Although the new Retail Ombudsman may be a bit of a crock in terms of Consumer protection it’s a different thing if the Ombudsman is regulated e.g. for energy, financial advice, mortgages, insurance and savings. If you receive or want to make a complaint then go to http://www.ombudsmanassociation.org to see if there is a relevant ombudsman and if its findings are binding.

 

 

 

Meanwhile suitably-barmy advocates of ‘Workplace Wellness’ in the USA are hoping 2015 will be the year that ‘Standup Desks’ take off. These have been favoured by great minds such as Leonardo da Vinci and of course Michael O’Leary, the Chief Exec. of RyanAir. He once suggested RyanAir were considering ‘standing-only’ spaces on their flights and charging people to use the loo. Despite criticism from the Guild of Chairmakers, Joe Nafziger, the Californian inventor of Standup desks said “It’s definitely a worldwide thing that’s picking up speed”.

Advocates of ‘Workplace Wellness’ in the USA are hoping 2015 will be the year that ‘Standup Desks’ take off

Joe would love to hear your opinion of whether standing behind a stall all day in January is good for your health.

unit to let

Quarterbridge Commercial Director, Hayden Ferriby gives you his top tips for successfully letting market units.

 

Letting units in any market hall can be very tough going, regardless of the location. As with all property lettings, there are key points to follow to ensure presentation is excellent to attract the perfect business to your market.

The appearance – sell the vision

It goes without saying that high levels of cleanliness and maintenance should be upheld within your market; make sure the unit you wish to let is the same. Remember, you are selling a prospective business their new home – not everyone has the foresight to imagine how a unit could look when occupied, and not just how it looks as an empty shell.

 

  • An unused unit is a magnet for children’s rides, rubbish and other tenants’ old stock – make sure it is kept clear, clean and presentable
  • Undertake minor repairs – small, simple fixes can make the world of difference Make sure the unit number is visible
  • Turn the lights on, ensuring all the bulbs work!

If there is any equipment being let with the unit (coldroom, serve-over counters, for example), check they are fully functioning, are odour free and clean. Ideally, ensure they are serviced and the service history is up-to-date. This will make life much easier for the incoming tenant.

Advertising – find the right tenant

Gone are the days that passive advertising alone will find you the perfect business for your market. These days, market managers need to go out knocking on doors to attract the best businesses – though luckily there are ways of doing this ‘virtually’ to save both your time and shoe leather.

 

  • Decide on the user clauses you wish to attract to your market – set yourself a goal and don’t just accept the first business that comes along. Prepare to be flexible though – you never know when someone will come up with a completely different idea that will be perfect for you.
  • Use social media to advertise for new businesses. It is free, easy to use and wide reaching across age ranges, demographics and geographical areas.
  • Facebook advertising is cheap, easy to control and simple to use. This can help you reach out to thousands of people for very small outlay.
  • Use internet search engines to source contact information for local and regional businesses that fit your user clause aspirations. Write to them all, showing how your market would be the perfect home for them. If possible, include some well-taken photos of the unit and the market hall. Describe the fantastic environment they will be joining and sing the praises of the events you run. Remember to follow up with an email or letter.

And very importantly… make sure you put a big, bold To Let board up in the unit with the correct contact information on!

The process – keep it simple

Once you’ve found the perfect business to fill your empty unit, you need to take them through the lettings process. You will need to advise them on whether they are signing a lease or licence, what documents they need to provide, deposits to make and how long the process will take. Even if you have gone through the process hundreds of times and it seems simple to you, remember this will be an exciting but probably anxious time for the applicant so explain everything clearly and make them feel at ease throughout. Having worked with many markets across the UK, we know that the lettings process varies from one market to another with some markets even including elements such as approval of an applicant by all existing market traders. Whatever your lettings process, ensure it is as seamless as possible by adopting the following points:

 

  • Simplify the process as much as possible.
  • Make a step-by-step applicant’s guide to the process.
  • Include an explanation of key phrases such as ‘licence’ or ‘service charge’ – this is especially useful when dealing with start-up businesses.
  • Keep in regular contact with the applicant and let them know how their application is progressing.

market cuts

 

When Journalist and Broadcaster Alistair Cooke joined the New York Times he was puzzled by a large sign – KISS – hanging on the wall of the newsroom. His editor explained: ‘Keep It Simple, Stupid. Your readers have 10 minutes on the subway to read and understand your article. Then tomorrow it will be on the bottom of their budgie cage’. The business consultancy Deloitte did just that in December with their annual ‘State of the State’ report published in partnership with independent Think Tank ‘Reform’ it showed the progress the coalition government has made in restructuring the economy after the 2008 financial crisis.

A Deloitte reports suggests that: ‘Councils are likely to move away from providing services they are not legally required to provide ‘ i.e. discretionary services such as Markets.

According to Deloitte/Reform just under half of the necessary spending cuts have been achieved but all the quick fixes – public sector pay freezes and redundancies etc – have now been used up. The second half of the necessary cuts is going to be MUCH tougher. The report suggests that of necessity ‘Councils are likely to move away from providing services they are not legally required to provide ‘ i.e. discretionary services such as Markets. There’s also a nasty sting in the tail with the warning that: ‘Whilst early spending cuts took place in a recession, the coming ones will be in a period of economic GROWTH. Citizens are more likely to experience roads in disrepair, dirtier streets, unkempt parks, and fewer pools and libraries’. The UK may now have emerged from recession and be the fastest-growing economy in the EU but government spending needs to be savaged for years to come. The report suggests ‘the UK’s governance, public sector and citizen experience of public services is likely to change profoundly’ i.e. ring their Contractor, not the Council if your bin isn’t collected on time. The report illustrates the enormous growth in the public sector over the last 50 years which in inflation-adjusted figures has risen from £190 billion in 1964 to £730 billion in 2014. Public sector spending now represents an unprecedented 44% of the UK’s Gross Domestic Product.

£1.4 trillion of debt was borrowed to buy Royal Bank of Scotland to prevent total economic meltdown. This debt continues to rise and costs the taxpayer £1 billion per week in interest payments – more than the government spends on education.

The report steers clear of political point-scoring but does confirm the record annual budget deficit of 2010 meant the government spent £159 billion MORE than it received in income. This annual deficit has now been reduced by about half after the coalition government set itself the ambitious target of eliminating it entirely by 2018/19. Once this has been eliminated by ‘fiscal consolidation’ HMG can start paying back the £1.4 trillion of debt borrowed to buy Royal Bank of Scotland etc and prevent total economic meltdown. This debt continues to rise and costs the taxpayer £1 billion per week in interest payments – more than the government spends on education. If this isn’t reduced then by 2023 the interest payments will be three times greater than total expenditure on the armed forces. Whichever government we have after next May the need to buy-down the debt is so pressing that hoping economic growth will make the problem go away is not an option.

Quarterbridge has unrivalled experience of securing investment and restructuring Markets services to meet the challenges

If you cast your mind back to 2010 you’ll remember the long overdue creation of the independent Office of Budget Responsibility to produce ‘Whole Government Accounts’ for the UK. In retrospect it’s amazing that prior to then there was no set of trading accounts for the government. That’s not exactly the way to run a Business or a Markets Service or Country, but it happens. The good news is Quarterbridge has unrivalled experience of securing investment and restructuring Markets services to meet the challenges.

You can download a copy of the Deloitte report from: http://www2.deloitte.com/content/dam/Deloitte/uk/Documents/public-sector/deloitt-uk-state-of-the-state-2014.pdf

Woking Market Walk

 

Since opening with a grand launch weekend at the beginning of October, 2014, the first few months operating Market Walk in Woking have been exciting times.

Through our dedicated management company, Woking Market Company Ltd, Quarterbridge have operated and asset-managed the new covered market development set in the heart of Woking’s retail centre. Open seven days a week, housing 15 permanent kiosks and 7 pop-ups, Market Walk is well-situated between Woking’s two shopping centres, Wolsey Place and The Peacocks.

100% let by Quarterbridge

The market was 100% let by Quarterbridge prior to opening and it successfully provides a key home for independent retailers ranging from fresh produce to flowers and catering to crafts. It is these independent retailers that make Market Walk a popular shopping destination, attracting an average 67,000 shoppers per week.

The management team is a combination of on-site management and operatives combined with head office support for marketing and administrative duties. It is this team that have guided the market through its fit-out phase, an exciting launch and a busy (though late starting) Christmas period into the first quarter of a New Year.

Market walk is a great example of collaboration between public and private sectors

Market Walk enjoys a rare position for a market in the UK, benefitting from the combined purchasing power and operational services of both the Council and shopping centre management by Woking Shopping. We can access services supplied from both parties to ensure areas such as 24/7 security and cleaning services are provided for the best value. The development of this market is a great example of a combination of a local authority financial and community investment combined with private sector experience from both the markets and shopping centre industries.

Early success for tenants

Although the market hasn’t been open long, during this short period we have already seen our tenants develop and expand. We are excited to see how they will continue to develop their businesses and how best we can support them.

News-Mary Portas 710 x 470

I’m no great fan of TV’s ‘Mary, Queen of Shops’ but I have to say last month’s report by Mary Portas into ‘The Future of our High Streets’ is a good read. She might be a bit too quick jumping onto a passing bandwagon for everyone’s tastes, but isn’t that what retailing is all about? At the start of 2011 MP was invited by the PM to suggest a cure for the UK’s declining High Streets. She published her report in December which can now be downloaded from www.maryportas.com. It contains some uncomfortable reading for retail businesses both large and small:

‘Expectations have been raised in terms of value and service which the average high street has simply failed to deliver. During the boom years many extremely mediocre businesses survived and flourished – Woolworths is a prime example’. Ouch.

There are thousands of businesses in Britain who once managed to make a living out of retail but have simply failed to adapt.

She goes on to criticise unimaginative retailers who might know their product inside-out but are simply no good at running a business.

‘There are thousands of businesses in Britain who once managed to make a living out of retail but have simply failed to adapt. Hard-working, committed and professional people, frequently real experts in their fields who haven’t adapted their retail offer to meet the increasingly-demanding expectations of todays consumer. In a world where the sheer sophistication, speed and scale of the web and major supermarkets will always be pushing new boundaries you’ll never be able to compete with the range and diversity of the major multiples’.

There is no point in going head to head with a supermarket chain.

At this point a few of us might start to feel a bit uncomfortable but I have to say she’s on the right track – there’s very little room for sentiment in retailing where you either Do or Die. I also agree there’s no point in going head to head with a supermarket chain – better to box clever and specialise. She points out the phenomenal growth of online sales is as great a threat to multiple retailers as independents so demand for High Street shops was already drying-up before the recession hit. As Sir Philip Green of Arcadia Group says: Why carry the burden of a High Street rent when you can increase profits by selling online? Although rents are (believe it or not) still cheap on markets there are still too few businesses promoting themselves via the web and treating their stall as a ‘showcase’ while making core profits on the internet.

Online sales are growing at 10% per annum and set to increase.

MP also has a good poke at landlords and local government for allowing charity shops to take over High Streets and withholding business rates concessions that encourage occupancy. She advocates ‘Town Teams’ comprised of local stakeholders – retailers, landlords and residents, who would run the High Street as a business (just like their out-of-town and shopping centre competitors). She is dismissive of existing Town Centre Managers who have ‘varying powers and responsibilities with little retail or consumer knowledge’ – well maybe, but whether the town Teams are intended to replace or be piggy-backed onto existing Business Improvement Districts is unclear, as is how they are financed.

The report is a good read but some of her ideas ring a loud alarm bell in my head – relaxation of the Use Classes regulations for instance. The need to obtain planning consent to change from one retail use to another was introduced to give local Councils control over the type of shops on their High Street. A Council, like a good market manager knows how important it is to encourage competition and variety but a manager can apply his own informal version: ‘Sorry mate but we’re full up with mobile phones already’. Removing use classes control on the High Street would simply see the remaining few independents displaced by multiple-owned convenience stores fighting for market share – or fast food takeaways or charity shops. The problem is not the system but the lack of determination with which it is enforced. Maybe the Town Team can do that.

The Portas report is a great contrast to another long-awaited published in December – Lord Turner’s report into the managerial ineptitude of the Financial Services Authority which allowed the Royal Bank of Scotland to collapse. After all, it only cost the British taxpayer some £45 billion of bail-out. Hardly worth mentioning really…

In 500 pages of technical explanation of how and where it all went wrong I didn’t see anyone say ‘I’m sorry – we screwed up’ or better still – ‘We did screw up but the people responsible have been sacked and prosecuted.’ Instead the former Chief Executive, Hector Sants is now deputy governor of the bank of England. Thanks heavens for that – we’re finally safe from the Eurozone crisis. Negligent directors of private companies get sued and barred from further office but government bodies use the Charge of the Light Brigade excuse coined by Sir Humphrey in Yes, Minister: ‘This was a most unfortunate clerical error…’

On an equally sad note I’m sorry to bid farewell this month to Peter Naylor – long-suffering editor of ‘Market Trade News’. Widely-respected throughout the publishing industry for his ruthless determination to stamp out split infinitives and incorrectly-placed commas his editorial talents are only matched by his story-telling skills. His tales of monster salmon which have eluded him on the North Esk may get taller each year but I have to admit he is a bloody good fisherman. Tight lines in your retirement Peter!